Historical Returns: Expected and Required Rates of Return

You have observed the following returns over time:

Year	Stock X		Stock Y		Market
2015	14	%	13	%	11	%
2016	21		8		11
2017	-15		-8		-12
2018	5		3		3
2019	22		9		13

Assume that the risk-free rate is 5% and the market risk premium is 4%.

What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places.

Stock X:

Stock Y:

What are the required rates of return on Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places.

Stock X: %

Stock Y: %

What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places.

%